National Republican., 1887-03-14
The Financial Condition.

II the late Secretary Of the Treasury, Mr..
Manning, was accurate in his estimates, and
IL is to be presumed that he was, there will
be paid into the treasury during the next
fiscal year an average of ten million dollars
each month, more than can be disbursed
under any existing law. There can be no
bond calls during that year because by the
first Of July all the bonds that are due will
be paid, and the result will be that an
enormous sum Of money will In q few
months be withdrawn from circulation.
Any one who has the slightest knowledge
of the finances and needs Of the country
cannot help seeing that this withdrawal of
money from active use will result in very
great hardships and almost certainly pro-
duce financial panic, carrying widespread
ruin.
The report Of the comptroller OF the cur
rency shows that the circulating medium
Of the country, including gold, silver, legal
tender and bank notes, gold and silver
certificates, amounts in round numbers to
about eighteen hundred million dollars,
which would indicate thirty dollars per
capita, sum too small to transact the
business Of the country.
But these figures do not indicate the cir.
culating medium, for the reserves must be
deducted before we can determine the
actual amount Of money in use. The coin
held in the treasury as a reserve fund, the
gold and silver held in the treasury repre-
septing outstanding certificates, the ma
tional bank reserves, the legal tender notes
held to redeem national bank notes, and
the national bank notes held for the same
purpose, all taken together, amount to one
half the sum mentioned, aud reduce the
actual circulating medium to 100000, 900
or only fifteen dollars per capita.
England has twenty eight aud France
| forty dollars per capita circulation. In this
country large sums, amounting perhaps
10 ten per cent. of the currency, are con
tlnually withdrawn from circulation by
| being in transmission from one section to
another, SO that in reality our per capita al
lowance is less than half that of England
and only one.third that of France.
From September to March all the great
| agricultural products Of this country
wheat, corn, hay, cotton, and tobacco, arC
transported from the place Of production
10 the markets and the place Of consump.
tion, and the largest possible amount O.
money is needed for that purpose. II there
is a scarcity Of money, the price OF thes
products is necessarily reduced, and tn
agriculturis.s, who constitute the grea
body of the people, are compelled to sulre
serious loss.
The imbecility Of the Democratic Hous
Of Representatives prevented the enact
ment of any law by which the income conl
lie reduced, and defeated every measur
like the Blair educational bill, the fortified
tions and navy bills, the river and harbo
bill, by which portion at least of the im
menee accumulations could be expended.
1t has been suggested that the treasur
could enter the market and buy the unma
tured bonds, and thus prevent none
panic, but there is no law authorizing an
such action, and no Secretary Of the Treas
ury would dare to do this without pos
tive law directing 1t.
There is but one possible remedy, an
that is the calling Of the iiftieth Congre:
together, in the hope that 1t will have moi
sense than its predecessor and provide &c
the necessary reduction Of the taxes. Bu
TO secure that it will be necessary for tn
House to select some man as speaker VIII
will not, as Mr.. Carlisle did, usurp at
thority TO prevent any action that did nc
coincide exactly with his views.
President Cleveland did all in his powt
by repeatedly calling the attention Of Con
gress TO the situation, and, as the urgenc
is now greater than ever before, we have u
doubt that lie will do his duty in til
| rrlniscs.